Acelity said today it used proceeds from the sale of its LifeCell regenerative medicine to repay debt owed by the company and its subsidiaries Kinetic Concepts and KCI USA.
The San Antonio, Texas-based company said it repaid in full the existing credit facilities of its Kinetic Concepts and KCI USA subsidiaries and redeemed all outstanding principal amounts on their 9.625% second lien senior secured notes due 2021 and the 12.5% senior notes due 2019.
“The completion of the sale of LifeCell and subsequent repayment of debt bolsters our balance sheet and significantly reduces our interest expense. This further positions us to focus on our leading advanced wound therapeutics business and the many opportunities we have to drive growth,” prez & CEO Joe Woody said in a press release.
Acelity said it also entered into a new credit agreement for a $1.1 billion term facility, as well as a $255 million (EU €239 million) facility and a $300 million revolving facility. Term loan facilities and the revolving facility are set to mature on Feb. 3, 2024 and Feb. 3, 2022, respectively.
The deal brings LifeCell’s regenerative medicine and reconstructive portfolio to Allergan, joining a portfolio of medical aesthetics, breast implant and tissue expander product lines. Dublin-based Allergan said it expects to bring in $450 million in revenue this year, growing at a mid-single digit rate.